Ithaca Energy PLC (LSE:ITH) has agreed a deal to take full ownership of the Fotla Discovery in the UK North Sea, with the transaction entirely comprising future contingent payments.
The London-listed oil and gas producer is buying from Spirit Energy the 40% of Fotla that it doesn’t already own.
It will pay Spirit via two capped contingent payments, 75% of the total consideration will be payable upon a "final investment decision" for a field development and the remaining 25% will come due once production begins.
Ithaca told investors that the transaction will give it full control over pre-final investment decision work and timing.
Fotla is being targeted for first oil production in 2026, with Ithaca presently evaluating development plans for the project.
"The acquisition will provide Ithaca Energy with full control over the pre-final investment decision work programme and timing of project sanction as we seek to maximise value from our high-quality investment portfolio,” said Ithaca chief executive Alan Bruce.